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What's the current yield of a 3.8 percent coupon corporate bond quoted at a price of...

What's the current yield of a 3.8 percent coupon corporate bond quoted at a price of 102.08? (Round your answer to 2 decimal places.)

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Answer #1

Information provided:

Par value= $1,00

Coupon rate= 3.8%

Coupon payment= 0.038*1,00= $3.8

Current price= 102.08

Current yield is calculated using the below formula:

Current Yield= Annual interest/Current price

                          = $3.8/ $102.08

                          = 0.0372*100

                          = 3.72%.

In case of any query, kindly comment on the solution.

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